Legg Mason Washes Hands of SIV Foray

Mutual-Fund Firm Plans Big Write-Down

By

Ian Salisbury

Updated March 6, 2009 12:01 am ET

Legg Mason Inc. will take a $610 million pretax write-down to rid its money-market funds of securities issued by structured investment vehicles, fixed income-related entities that caused havoc with some cash-like money funds last year.

The Baltimore-based money manager is selling SIV securities with a face value of about $1.8 billion for about $467 million, or 25 cents on the dollar, the company said in a statement Thursday.